An Analysis of Market Potential of Game Meat - PowerPoint Presentation

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An Analysis of Market Potential of Game Meat

WILDLIFE FARMING CONFERENCE29 August 2015

TSHWANE EVENTS CENTREDR. G.C. DRYWRSA Past-President

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AN ANALYSIS OF THE MARKET POTENTIAL FOR GAME MEAT

WRSA Past-President: Dr GC DryScope of the Wildlife Ranching IndustryIdeology & Culture underpinning Wildlife RanchingSuccesses of Game Ranching in South AfricaConservation Failures WorldwideWildlife Ranching Countering Worldwide TrendsProfile of Investors & OwnersCurrent Supply of Game Meat2025 Forecast

ABSA Agri: Ernst

Janovski

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Scope of the Wildlife Ranching Industry

Private Game Ranchers: 16.8% of agricultural landState owned Protected Areas: 6.1% of agricultural footprintR20 billion annual contribution to GDP20 million + heads of game in private ownership6-8 million heads of game in Protected Areas14-15 million head of cattle (9 million in commercial sector)Investment:20 million ha land utilized for game ranching @ R10 000/ha = R200 billionGame, infrastructure & equipment = R200 billionSlide4

Ideology & Culture Underpinning Wildlife Ranching

OwnershipConstitution, Common Law & Game Theft Act (1991)Green Economic Principles & Sustainable UseLove of NatureCompassion for AnimalsSlide5

Successes of Game Ranching in South Africa

20 million ha of marginal, often damaged agricultural land converted to sustainable land-use option.Note: the 20 million ha is ex-agricultural land, not degraded conservation land.140 000 sustainable jobs:3x compared to domestic stock operationsSalaries 3x domestic stock equivalentsIncreased biodiversity, e.g.Oxpeckers – previously threatenedDung beetle species increaseVulture “restaurants”Other raptors

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Successes of Game Ranching in South Africa

Wildlife ranching plays a major role in:Saving species (white rhino; bontebok; Cape mountain zebra; black wildebeest; geometric tortoise and a number of other species, as well as,Protecting the rich diversity of vegetation typesContributing to increasing landscape connectivity (Cousins, J)Green Economy SuccessSlide7

Food Security:

“Food security” implies physical, social and economic access by all South Africans, at all times, to sufficient, safe and nutritious food which meets dietary needs for an active and healthy life. The following dimensions are relevant:adequate availability;access to;

affordability; stability; use of marginal agricultural land to produce commodities, e.g. game to generate local and foreign revenue that can be used for the importation of essential food commodities.

Successes of Game Ranching in South Africa (continued)Slide8

Conservation Failure Worldwide

The primary causes of species and habitat loss (in Southern Africa) are conversion to cultivated land, followed by urban sprawl, alien plant invasion and plantation forestry.74 largest terrestrial herbivore species on Earth (body mass >100 kg), are generally facing dramatic population declines and range contraction, such that ~ 60% are threatened with extinction.Kenya: lost almost 80% of its wild animals since the ban on hunting and trade.Slide9

Wildlife Ranching Countering Worldwide Trends

Source: Drs Pamela and Peter Oberem Embargo on use or publication.Slide10

Profile of Investors & Owners

In business & management language the combination of investors, owners, product and capacity, reflects a sound indicator of sustainability.© BerghSlide11

Profile of Investors & Owners

Investors:Trade NameInvestors well-educated/informed (50% undergraduate or post-graduate degree, 26% diploma, 14% matric)

Shareholder agreements increased

From 2009-2013 with 37%

From 2013 with 18%Slide12

Profile of Investors & Owners

OWNERSAgricultural Land Classification SchemeSimilar to shareholders, well-educated with 76% tertiary education and 20% matricMethod of acquiring game farmMost popular species ranched are kudu (77%), common impala (76%), blesbok (62%), waterbuck (60%), blue wildebeest (59%), eland (59%).

Bought a cattle or crop farm and converted in into game farm46%Bought already existing game farm23%Bought a cattle or crop farm that was already partially converted to a game farm

9%Inherited cattle or crop farm and converted it into game farm

6%

Inherited cattle or crop farm that was partially converted into a game farm

8%

Other

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Current Local Supply of

Game Meat30 000 tons of game meat (undeclared) estimated used in processed meats such as polonies, sausage, etc.120 000 tons of game meat hunted by local hunters annually.20 000 tons of game meat hunted by trophy hunters annually.1 400 tons harvested annually for

meat directly150 000 tons (estimated) utilized annually in South Africa

Note: Beef imports for 2015 expected to be > 65 000 tons.

*

(Johan Kruger Game Harvesters Association, 2015)© BerghSlide14

Current Export Supply of

Game MeatPRIOR TO FMD OUTBREAK FEBRUARY 2011Exported between 600-800 tons of boneless product to EuropeSought after species not sufficiently available e.g. springbok, kudu and blesbokWRSA GOAL FOR 2015To reach 10-12 000 tons (providing R1.5 billion + foreign revenue per annum)MAIN CONSTRAINTS

Fragmented nature of supply chainVeterinary Services meeting OIR requirements for FMD controlApproved abattoirs (game meat scheme / DAFF regulations and approved mobile abattoirs)

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2025 FORECAST

Land use option under Game Ranching: 30 million ha (30% SA’s Agri land)30 million head of game.350 000 decent sustainable employment opportunities.250 000of game meat produced per annum.R75 billion per annum contribution to GDPWRSA seconds Walt Disney’s notion namely;

If you can dream it, you can do it!© BerghSlide16

THANK YOU© van der Merwe